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Title IV of the JOBS Act of 2012

Thursday, June 11, 2015

As of June 19, 2015 it will become much easier for small business startups to raise capital, as Title IV of the Jumpstart Our Business Startups Act of 2012 (“Act”) goes into effect. The new Act revises some of the regulation that, combined with limitations on availability to capital, has made it difficult, costly and time consuming for startups to get off the ground. The Act accomplishes this with the removal of the accredited investor requirement, an individual with a net worth of $1M or more or $200,000 in annual income, for small startups wishing to raise large sums of money, as well as eliminates the wait to be approved by state regulatory bodies and the requirement to issue quarterly reports and list their shares on an exchange. Additionally there is a “test the water” provision which allows startups to run their ideas by the media and investors before they are required to spend the money on a formal proposal to be reviewed by the Securities and Exchange Commission.

On June 19 small startups will be able to raise money, values of $20M to $50M, through crowdfunding programs. This means that any individual of adult age residing in the United States will be able to take part in small offerings.

About Red Oak Compliance Solutions

Red Oak Compliance Solutions is the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.